In five years, ₱1.8M will be needed to pay for a building renovation. In order to generate this sum, a sinking fund of three annual payments is established now. For tax purposes, no further payments will be made after three years. How much payment is necessary if the money is worth 14% per annum? Assume a 6% inflation rate.

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Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.